The Law of Comparative Advantage Indicates That

question 222

Multiple Choice

The law of comparative advantage indicates that

• A) a group of people will reduce their output when each good or service is supplied by the low opportunity cost producer.
• B) trading partners lose when they can acquire a good through trade cheaper than they can produce it.
• C) trade is most effective when people trade only among those in their own nation.
• D) a group of people can increase their output when each good or service is supplied by the low opportunity cost producer.

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Definitions:

Revenue Per Employee

A measure of the efficiency of the business in generating revenues, which is computed as revenue divided by number of employees.

LLC Members

Individuals or entities that own a portion of a Limited Liability Company (LLC) and have rights and responsibilities as outlined in the LLC's operating agreement.

Business Expansion

The process by which a company increases its size, operations, or market reach, often through investments in new facilities, acquisitions, or increasing workforce.

Revenue Per Employee

A financial metric indicating how much revenue each employee generates for the business, often used to assess efficiency and productivity.